Chapter 13 dessler 12-ce_ppt_ch13

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Chapter 13 dessler 12-ce_ppt_ch13

  1. 1. Chapter 13: Employee Benefits and Services Employee Benefits and Services | 13-1 Copyright © 2014 Pearson Canada Inc. All rights reserved. Dessler, Chhinzer, Cole Human Resources Management in Canada Canadian Twelfth Edition
  2. 2. Learning Outcomes • DESCRIBE six government-sponsored benefits. • EXPLAIN why the cost of health insurance benefits is increasing and how employers can reduce these costs. Employee Benefits and Services | 13-2 Copyright © 2014 Pearson Canada Inc. All rights reserved. • EXPLAIN the strategic role of employee benefits.
  3. 3. Learning Outcomes • DISCUSS three types of personal employee services and six types of job-related services offered to employees. • EXPLAIN how to set up a flexible benefits program. Employee Benefits and Services | 13-3 Copyright © 2014 Pearson Canada Inc. All rights reserved. • DESCRIBE the two categories of pension plans and the shift that is occurring in their relative popularity.
  4. 4. Employee Benefits • may include supplementary health and life insurance, vacation, pension, education plans, and discounts on company products • becoming larger part of total compensation • useful in attracting talent • increasingly important for aging workforce Employee Benefits and Services | 13-4 Copyright © 2014 Pearson Canada Inc. All rights reserved. • indirect financial payments given to employees
  5. 5. Government-Mandated Benefits • Employment Insurance (EI) • pay on termination of employment • Canada/Quebec Pension Plan (CPP/QPP) • workers’ compensation • vacations and holidays • paid breaks Employee Benefits and Services | 13-5 Copyright © 2014 Pearson Canada Inc. All rights reserved. • leaves of absence
  6. 6. Employment Insurance (EI) • eligibility • benefit period • funding • supplemental unemployment benefit (SUB) Employee Benefits and Services | 13-6 Copyright © 2014 Pearson Canada Inc. All rights reserved. • a federal program that provides income benefits if a person is unable to work through no fault of his or her own
  7. 7. Pay on Termination of Employment • amount of payment varies according to jurisdiction and circumstances: • pay in lieu of reasonable notice • severance pay (Ontario and federal jurisdiction only) • pay for mass layoffs (some jurisdictions) Employee Benefits and Services | 13-7 Copyright © 2014 Pearson Canada Inc. All rights reserved. • does not apply to those on short-term contract or fired for just cause
  8. 8. Leaves of Absence • unpaid time off • employer must guarantee same or similar job when employee returns • common types: • • • • maternity/parental leave parental/adoption leave bereavement leave compassionate care leave Employee Benefits and Services | 13-8 Copyright © 2014 Pearson Canada Inc. All rights reserved. • conditions vary by jurisdiction
  9. 9. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Application for Leave of Absence continued Employee Benefits and Services | 13-9
  10. 10. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Application for Leave of Absence Employee Benefits and Services | 13-10
  11. 11. Canada/Quebec Pension Plan (C/QPP) • programs that provide basic level of security on retirement • retirement income • survivor or death benefits • disability benefits • benefits based on individual contributions made Employee Benefits and Services | 13-11 Copyright © 2014 Pearson Canada Inc. All rights reserved. • three types of benefits:
  12. 12. Workers’ Compensation • income and medical benefits to victims of work-related accidents or illnesses, regardless of fault • funded collectively by employers • administered by jurisdictional workers’ compensation boards Employee Benefits and Services | 13-12 Copyright © 2014 Pearson Canada Inc. All rights reserved. • “no fault” insurance plan
  13. 13. Vacations, Holidays and Paid Breaks Vacation • minimum amount of paid vacation must be provided to employees • varies by jurisdiction, • minimum 5 days, maximum 9 Paid breaks • uninterrupted break within a work day • e.g. 30 minute break on a shift over 5 hours Employee Benefits and Services | 13-13 Copyright © 2014 Pearson Canada Inc. All rights reserved. Holidays
  14. 14. Voluntary Employer-Sponsored Benefits • life insurance • supplementary healthcare/medical insurance • long-term disability • sabbaticals • retirement benefits Employee Benefits and Services | 13-14 Copyright © 2014 Pearson Canada Inc. All rights reserved. • short-term disability and sick leave plans
  15. 15. Life Insurance • group plans offer lower rates and inclusion of all employees • accidental death coverage • dismemberment coverage • critical illness insurance Employee Benefits and Services | 13-15 Copyright © 2014 Pearson Canada Inc. All rights reserved. • additional benefits:
  16. 16. Supplementary Healthcare/ Medical Insurance • supplements provincial healthcare plans • employee usually pays a yearly deductible amount • usually includes prescription drugs, private/semi-private hospital rooms, other health costs not covered by provincial plans • may include dental, vision care, hearing aids Employee Benefits and Services | 13-16 Copyright © 2014 Pearson Canada Inc. All rights reserved. • group rates lower than individual rates
  17. 17. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Health Plan Costs Employee Benefits and Services | 13-17
  18. 18. Reducing Health Benefit Costs • increase amounts paid by employees • restrict drugs paid for by plan • risk-assessment programs • healthcare spending accounts (HCSA) Employee Benefits and Services | 13-18 Copyright © 2014 Pearson Canada Inc. All rights reserved. • health promotion
  19. 19. Short-Term Disability and Sick Leave Plans • provides income to employees when absent due to non-work related injury or illness • usually covered by insurance company sick leave plan • provides income for 2 or 3 days • usually a specified number of sick days per year Employee Benefits and Services | 13-19 Copyright © 2014 Pearson Canada Inc. All rights reserved. • requires medical certificate
  20. 20. Long-Term Disability Plans • income to employees for absence due to nonwork related long-term injury or illness • accelerating trend in claims • disability management • mental health issues are leading cause of disability claims Employee Benefits and Services | 13-20 Copyright © 2014 Pearson Canada Inc. All rights reserved. • usually 50% to 75% of pay
  21. 21. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Mental Health Benefits Employee Benefits and Services | 13-21
  22. 22. Sabbaticals • time off to rejuvenate or pursue personal goals • helps retain employees and avoid burnout Employee Benefits and Services | 13-22 Copyright © 2014 Pearson Canada Inc. All rights reserved. • usually unpaid
  23. 23. Retirement Benefits • defined contribution pension plan • benefits based on amount of contribution and value of fund • group RRSP • employer sets up RRSP fund • deferred profit sharing plan (DPSP) • portion of profits is put into fund Employee Benefits and Services | 13-23 Copyright © 2014 Pearson Canada Inc. All rights reserved. • defined benefit pension plan • benefits formula based on earnings and years of service
  24. 24. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Registered Pension Plans Employee Benefits and Services | 13-24
  25. 25. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Phased Retirement Programs Employee Benefits and Services | 13-25
  26. 26. Employee Services Job-related services: • credit unions • subsidized childcare • counselling services • eldercare • employee assistance programs (EAPs) • subsidized employee transportation • other personal services (social and recreational) Employee Benefits and Services | 13-26 • food services • educational subsidies • family-friendly benefits Copyright © 2014 Pearson Canada Inc. All rights reserved. Personal services:
  27. 27. Executive Perquisites (Perks) • management loans • salary guarantees (golden parachutes) • relocation benefits • outplacement assistance • company cars, chauffeured limousines • concierge service Employee Benefits and Services | 13-27 Copyright © 2014 Pearson Canada Inc. All rights reserved. • financial counselling
  28. 28. Flexible Benefits Programs • constraints: • employer must limit total cost for each benefits package • benefit plan must include certain items that are not optional (government mandated benefits) Employee Benefits and Services | 13-28 Copyright © 2014 Pearson Canada Inc. All rights reserved. • individualized benefit plans to accommodate employee needs and preferences
  29. 29. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Advantages and Disadvantages of Flexible Benefits Programs Employee Benefits and Services | 13-29
  30. 30. Benefits Administration • approaches • benefits communication • must provide correct, up-to-date information • ensure compliance with legislation • intranet increasingly used Employee Benefits and Services | 13-30 Copyright © 2014 Pearson Canada Inc. All rights reserved. • use of software • outsourcing

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